Martin Lewis has predicted good news for UK households as a Middle East peace deal sends energy prices falling. The money-saving expert says natural gas prices have dropped almost 2% following Sunday's agreement to end hostilities between Iran, Israel, and the US. Brent crude oil has also fallen 4-5% to around $82 a barrel after the deal reopened the Strait of Hormuz.
However, Lewis warned the October energy price cap still looks set to rise unless there are further steep falls. Around 60% of homes in England, Scotland, and Wales are on standard variable tariffs controlled by the price cap.
"The US and Iran signing a framework deal has pushed natural gas prices down," Lewis said. "The good news is that this could lead to slightly cheaper fixed tariffs being launched in the coming days."
The current energy price cap will rise 13% on July 1, meaning typical households will pay £1,862 annually - an increase of £221. Energy prices had been falling before the Middle East conflict began.
The peace deal is also expected to bring down mortgage rates, with experts saying it removes one of the biggest risks to borrowing costs. Financial expert Adam French said mortgage rates have "likely already passed their peak" following the agreement.
